Markets likely to open weak on negative cues from Asian peers

As we step into the F&O expiry week, we feel that Indian markets may open on a weak note as leads from the Asian markets are negative. This is on the back of media reports stating that the US President Donald Trump is planning to impose new curbs on Chinese investments in the US. The Nifty 50 index future on the Singapore stock exchange is currently trading lower by 50 points at 10,786.  

Majority of Asian markets are trading in the red on Monday as investors shrugged off the positive leads from the Wall Street amid the Wall Street Journal report that President Donald Trump plans to bar many Chinese companies from investing in the US technology companies and block additional technology export to China. Japan’s Nikkei 225 index has lost 91 points, Hong Kong’s Hang Seng has shed 81 points and China’s Shanghai Composite has dipped 4 points.     

Back home, after starting the session slightly lower, the benchmark indices moved in a thin band for the initial part of the trading session. However, buying in the second half of the session helped indices to settle above their crucial levels of 10,800 (Nifty) and 35,650 (Sensex). The broader indices also put up decent performance with Nifty the Mid-cap and Nifty Small-cap gaining 0.48% and 0.24%, respectively. On the sectoral front, all indices ended in the positive territory, and among these, Nifty Pharma and Nifty Fin Service emerged at the top with gains of 1.76% and 1.54%, respectively.  

The US stocks ended mostly higher on Friday. The Dow ended its eight-day losing streak, but the tech-heavy Nasdaq closed in the red. The Dow Jones Industrial Average gained 119 points to end at 24,581 and the S&P 500 added 5 points to finish at 2,755. On the other hand, the Nasdaq slipped 20 points to close at 7,693. In the latest development on the international trade front, the US President Donald Trump has threatened to slap crippling import tariffs on car imports from the European Union unless EU removes tariffs and trade barriers placed on the US goods.  

The European stocks finished firmly in the green on Friday, getting a lift after IHS Markit’s Euro Zone Composite Flash Purchasing Managers’ Index (PMI) for June suggested that business growth in Europe remains on a recovery path. The DAX of Germany climbed 0.54%, the CAC 40 of France jumped 1.04% and the FTSE 100 finished higher by 1.67%.